One of the hardest parts of saving is the initial commitment; well done on taking the first step. It is unclear whether you are going to make a lump sum contribution or have a debit order. There is no right or wrong answer here but my feeling is that for this type of investment a debit order provides a good foundation and you can then make ad-hoc top-ups too if you are able to (both practically and within legislative tax deductible contribution allowances).
Here’s a retirement annuity 101 for any readers that are rusty on the basics:
I can’t advise you on which product to go for because I don’t know enough about your financial situation, but a financial adviser can help you figure this out.
When it comes to choosing your platform though, you should look out for the following attributes:
1. There should be no penalty for decreasing or stopping your contributions
2. You should have flexibility to increase, decrease or stop your contributions whenever you like and as often as you like
3. The platform should offer a broad range of funds to choose from across asset classes and asset managers with no cost of switching
4. Pricing must be fair. This applies to the platform, funds and, if applicable, the financial advisor
5. Efficient administration (example: if you have a query after 10 years, you want it answered quickly and accurately)
6. Easy access to help
7. Embrace technology so you can get your investment information when and how you want it
Thankfully there are a couple of providers out there who match all these criteria.
In closing I would like to wish you good luck. If this is your only investment you want to explore splitting across other products, such as a tax free savings account, to get product, liquidity and tax diversification.
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